Napa winery that rose from wildfire now faces bankruptcy, and up to $50 million in debt
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Set us as preferred Another iconic California winemaker is having money troubles.Signorello Estate — a Napa Valley winery that rebuilt after becoming the poster child of the Atlas fire when its tasting room burned to the ground — filed for Chapter 11 bankruptcy protection last month.The company and seven affiliated entities filed for bankruptcy protection in the U.S.Bankruptcy Court for the Northern District of California.
According to the filing, Signorello Estate believes it owes its creditors between $10 million and $50 million.The property needs “immediate attention,” according to the filing, as it includes perishables that would deteriorate or lose value without attention.
After the Atlas fire destroyed the Signorello family’s winery in 2017 but spared the 40 acres of vines they owned, owner Ray Signorello Jr.pledged to rebuild.
Several years later, he unveiled the replacement: a grand “cave” winery buried in a hillside.In a Forbes interview, he boasted it was “probably the most fireproof place in the valley” and said the family paid for the facility with insurance proceeds, which covered only 25% of reconstruction costs, and financing.
The engineering firm that worked on the 28,000-square-foot Signorello Estate facility said on its website that it cost $20 million to build.When it reopened in 2024, a San Francisco Chronicle wine critic noted that Signorello, founded in 1977, raised its ambitions after the fire, tapping new wine-making talent and hiking tasting fees to $175.Current tasting fees are now $50 for a “social” tasting on the patio and $125 for a guided tour and seated tasting.
The average cost of a Napa wine tasting is $40, according to Visit Napa Valley, the region’s tourism board.The decades-old winery is now facing a foreclosure sale to cover a $37-million outstanding loan, accord...